Craft Retailer Adapts to Pandemic Challenges
- 200% increase in online sales for Hobbycraft during lockdown
- Revenues increased by 8.9% to £193.6m
- Adjusted EBITDA up 21.9% to £14.8m
- 5 new stores opened, totaling 99 stores
- Online business and social media classes met high demand during lockdown
- CEO Dominic Jordan focuses on product innovation and e-commerce improvements
Hobbycraft, the craft retailer, has reported a staggering 200% increase in online sales during the lockdown period. This comes as they also saw an 8.9% rise in revenues to £193.6m and a 21.9% increase in adjusted EBITDA to £14.8m for the year ended 16 February 2020. Despite temporarily closing all 100 stores, Hobbycraft managed to adapt by fulfilling customer needs online and through social media classes. Their new ranges and e-commerce improvements have driven growth in areas like art (up 20%), kids painting (17%), and digital cutting (over 100%). CEO Dominic Jordan plans further innovation and investment in the company’s future.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Hobbycraft’s financial performance, including sales growth and strategic plans for future growth. It also includes relevant quotes from the CEO, Dominic Jordan.
Noise Level: 2
Noise Justification: The article provides relevant information about Hobbycraft’s financial performance and its response to the pandemic, with specific details on online sales growth and new store openings. It also includes quotes from the CEO discussing future plans for product innovation and e-commerce improvements. The content is focused and informative without any apparent filler or irrelevant information.
Financial Relevance: Yes
Financial Markets Impacted: Hobbycraft’s stock price and other craft retailers
Financial Rating Justification: The article discusses Hobbycraft’s financial performance, including revenue, EBITDA, and online sales growth, which are relevant to the company’s financial health. It also mentions the impact of COVID-19 on its business operations and future plans, potentially affecting the stock price and other craft retailers in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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